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Chad’s revenue management law (Law 001/PR/99) comprises a number of
different elements. The law specifies that Chad’s oil revenues must flow through audited
offshore escrow accounts. It also establishes a monitoring body, the Collège de Contrôle
et de Surveillance des Ressources Pétrolieres (Petroleum Revenues Oversight and
Control Committee, CCSRP) to control and monitor the use of petroleum revenues.
Membership in the CCSRP includes a wide range of civil society representatives and the
CCSRP reports to parliament who receives its audits and reports.
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The law also
specifies in great detail how Chad’s petroleum revenues must be used. Gross revenues to
Chad comprise royalties, taxes and dividends and part of these go to the IBRD and the
EIB for debt servicing. The law then distinguishes between direct revenues (royalties and
dividends) and indirect revenues (taxes). Indirect revenues go to Chad’s treasury to be
used for general government expenditures with no strings attached. Direct revenues are
targeted in three specific areas. Ten percent of the direct revenues go to a “Fund for
Future Generations” designed to ensure that some of the benefits of oil revenue remain
after production has stopped. The remaining 90% of direct revenues go to the special oil
revenue account with five percent of the royalties earmarked for the Doba oil-producing
region. Until December 31, 2007, 80% of the royalties and 85% of the dividends are
earmarked for poverty reduction spending in the five priority sectors of education, health
and social services, rural development, infrastructure, and environmental and water
resources. The remaining 15% of royalties and 15% of dividends can be used for general
government expenditures. After December 31, 2007, 95% of the royalties and 100% of
the dividends go toward the priority poverty reduction spending mandates.
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Convention